Question

In the first six months of​ 2003, branches of Commerce Bank in New York City were robbed 14 times. The New York City Police recommended steps the bank could take to deter​ robberies, including the installation of plastic barriers called​ "bandit barriers." The police were surprised the bank did not take their advice. According to a deputy commissioner of​ police, "Commerce does very little of what we recommend.​ They've told our detectives they have no interest in ever putting in the​ barriers." It would seem that Commerce Bank would have a strong incentive to install​ "bandit barriers" to deter robberies. Why​ wouldn't they do​ it?

Answer 1

Optimal decisions are made at the margin.

Step-by-step explanation:

The establishment of the barriers will bring about a definite charge,but the probability of the bank enduring another theft is small.The expected losses might just be littler than the expense of the hindrances, since the past robberies are viewed as a sort of "sunk expense" to the bank. At the edge at that point, it appears that maybe the hindrances are not justified, despite any potential benefits.